10 Questions To Ask A Financial Advisor

By Laura Shin It’s not easy finding a financial advisor. After all, you have to trust this virtual stranger enough to reveal your financial situation – or hand your money over -- to him or her. But these steps can help you find the right fit.

Ask friends and family for referrals, says Minneapolis-based certified financial planner Sophia Bera, founder of Gen Y Planning. In particular, get recommendations from people whose financial needs, outlook or stage of life is similar to yours. Before contacting planners, look them up online and/or on LinkedIn. Something as simple as the photos on their homepages can indicate which ones are targeting your demographic.

Also, search for a planner directly on the sites of the Financial Planning Association and the National Association of Personal Financial Advisors. The advisors on the latter organization’s site are fee-only, meaning they will not earn commissions for selling you specific investments but simply charge you a rate, usually based on the assets you put under management. Many experts say that a fee-only advisor is preferable, to eliminate conflicts of interest and ensure he or she always acts with your best interest at heart.